Costco shareholders stand firm on DEI programs amid political pressure

WASHINGTON, UNITED STATES — In a decisive vote on Thursday, Costco shareholders rejected a conservative think tank’s proposal to roll back the company’s Diversity, Equity, and Inclusion (DEI) hiring practices.
This decision comes amidst widespread modifications of DEI initiatives influenced by anti-DEI directives from the Trump administration.
While major companies like Amazon and Boeing are reevaluating their DEI policies, Costco stands firm in its commitment to diversity.
Legal risks and corporate stance
The National Center for Public Policy Research (NCPPR) had argued that Costco’s DEI policies expose the company to potential legal challenges, citing discrimination against demographic groups such as white, Asian, male, or straight employees. They claimed such policies could cost Costco billions in litigation fees.
Despite these assertions, Costco’s board of directors recommended a vote against the proposal, which was overwhelmingly defeated with 98% of shareholders in agreement.
Future challenges and executive orders
The rejection of the proposal at Costco contrasts with an executive order from President Trump titled “Ending Illegal Discrimination and Restoring Merit-Based Opportunity.”
Signed on January 21, 2025, the order criticizes DEI initiatives as violations of federal civil-rights laws and detrimental to national unity. It emphasizes a merit-based system over what it describes as an identity-based spoils system.
Despite the victory at Costco, this sets the stage for ongoing debates and potential challenges as the political landscape continues to impact corporate policies on diversity and equity.
Costco’s shareholders have made a clear statement in support of DEI, but the broader context of political and legal challenges suggests that the journey towards sustaining these values will be fraught with obstacles.
Aside from Costco, tech giant Apple Inc. is also pushing back against a proposal from NCPPR to cut back on its DEI efforts.
In a recent proxy filing with the U.S. Securities and Exchange Commission, Apple urged shareholders to vote against the proposal, set to be discussed at the company’s 2025 annual shareholder meeting on February 25. The proposal demands Apple to “cease DEI efforts,” labeling the company’s DEI measures as inappropriate micromanagement of its business operations.